1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bezimeni [28]
3 years ago
6

Sharon and Amy are roommates. They spend most of their time studying (of course), but they leave some time for their favorite ac

tivities: making pizza and brewing root beer. Sharon takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Amy takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza.
a. What is each roommate’s opportunity cost of making a pizza? Who has the absolute advantage in making pizza? Who has the comparative advantage in making pizza?
b. If Sharon and Amy trade foods with each other, who will trade away pizza in exchange for root beer?
c. The price of pizza can be expressed in terms of gallons of root beer. What is the highest price at which pizza can be traded that would make both roommates better off? What is the lowest price? Explain.
Business
1 answer:
Ratling [72]3 years ago
3 0

Answer:

Explanation:

:

Sharon and Amy are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Sharon takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Amy takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza.  

a. What is each roommate’s opportunity cost of making a pizza?

Each room mates opportunity cost of making pizza is the beer they would have made with the time spent on making pizza which is

Sharon = 2/4 gallon of beer or 0.5 gallon of beer

Amy = 4/6 gallon of beer or 0.67 gallon of beer

Who has the absolute advantage in making pizza?  

Sharon arguably has absolute advantage because she has comparative advantage in producing both items because she spends less time producing both however she spends half the time of Amy in producing Pizza in particular

Who has the comparative advantage in making pizza?  

Sharon because she spends half the time of Amy in producing Pizza  

b. If Sharon and Amy trade foods with each other, who will trade away pizza in exchange for root beer? Amy will trade pizza for root beer because she has a greater disadvantage in Pizza production in relation to root beer when compared to Sharon. She spends double the time of Sharon in making Pizza but less than double the time of Sharon in making root beer

c. The price of pizza can be expressed in terms of gallons of root beer.  

Sharon = 2 hours/4 hours gallon of beer or 0.5 gallon of beer per pizza

Amy = 4 hours/6 hours gallon of beer or 0.67 gallon of beer per pizza

What is the highest price at which pizza can be traded that would make both roommates better off?  

That price should be lower than Amy's cost but higher than Sharon's cost, so they can both make profits. = (0.5+0.67)/2 = 0.585 gallon of root beer

What is the lowest price? Explain.

The lowest price will be the opportunity cost of Sharon which is 0.5 gallon of root beer because if the price is lower it becomes a loss to Sharon

You might be interested in
Variable costs as a percentage of sales for Lemon Inc. are 71%, current sales are $551,000, and fixed costs are $207,000. How mu
MAVERICK [17]

Answer: a.$10,904 increase

Explanation:

Operating income before sales increase:

= Sales - Variable costs - Fixed costs

= 551,000 - (71% * 551,000) - 207,000

= -$47,210

Operating income after sales increase:

Sales increases to:

= 551,000 + 37,600

= $588,600

= 588,600 - (71% * 588,600) - 207,000

= -$36,306

Difference:

= -47,210 - (-36,306)

= Increase of $10,904

7 0
3 years ago
Why do you think fans can be so resistant to hearing stars’ political views? Have you ever changed your opinion about any celebr
marishachu [46]

Answer:

Because we don't want to change the image of perfection that is created upon celebrities.

Yes, I have. When I started hearing Diego Maradona's support claims to the Venezuelan government I changed the view that I have from this man as a great soccer with charisma to a rather naive individual because the hard times that are lived by the people of Venezuela is well known for everybody.

8 0
3 years ago
g Marlboro Construction enters into a contract with a customer to build a warehouse for $725,000 on April 15, 2021 with a comple
Nookie1986 [14]

Answer:

B. $725,000

Explanation:

The expected value for the contract will be :

10% ($725,000 + 12,000 + 12,000 ) + 30% ($725,000 + 12,000 ) + 25% ($725,000 ) + 20% ($725,000 - 12,000 ) + 15% ($725,000 - 12,000 - 12,000 )

= $ 74,900 + $221,100 +$181,250 + $142,600 + $105,150 = $725,000

Marlboro constructions expected value of the contract is 725,000 based on the given probability estimates of contract completion.

8 0
2 years ago
The budget for a merchandiser differs from a budget for a manufacturer because
Oduvanchick [21]
<span>a merchandise purchases budget replaces the production budget.
the manufacturing budgets are not applicable.</span>
3 0
3 years ago
Anyone ? I need help
lozanna [386]

Answer:

a lender pays off your existing loans with a new one at a lower interest rate.

Explanation:

5 0
2 years ago
Other questions:
  • A value-based pricing strategy most likely begins with ________.
    6·1 answer
  • What is judical settlement<br>​
    7·1 answer
  • Indiana Co. bega n a construction project in 2018 with a contract price of $150 million to receive when the project completed in
    9·1 answer
  • The beliefs, attitudes, and behavior associated with a person or group; a way of life.
    12·1 answer
  • is personally responsible for all partnership debts. has no say over a firm's daily operations. faces double taxation whereas a
    5·1 answer
  • "modern technology is developed from traditional technology".Explain​
    5·1 answer
  • Miller Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $
    15·1 answer
  • Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control c
    15·1 answer
  • Jordan Sales Company (organized as a corporation on April 1, 2014) has completed the accounting cycle for the second year, ended
    7·1 answer
  • The​ ________ is the optimum budget to managers that plan revenues and expenses at different sales volumes.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!